Ready to pay ₹500 crore more for Binani Cement, says UltraTech

UltraTech Cement Ltd’s legal counsel on Thursday raised the company’s bid for Binani Cement Ltd by ₹500 crore, while reaffirming the AV Birla Group company’s ₹7,960 crore bid in the event of the National Company Law Tribunal (NCLT) ordering liquidation of the beleaguered cement maker.

Though the liquidation value of the firm is as little as ₹2,300 crore, counsel Mukul Rohatgi said UltraTech was willing to pay ₹7,960 crore for Binani Cement if the tribunal ordered liquidation of the firm. And during liquidation, if any bidder matched its offer, UltraTech would raise its bid by another ₹500 crore, Rohatgi submitted before the Kolkata bench of the NCLT.

When asked if UltraTech would stand by the statement made by its legal counsel at the tribunal, a spokesperson for the company declined to comment.

Even in the wake of UltraTech’s aggressive bidding for Binani Cement, Dalmia Bharat Ltd, the company chosen by the lenders as the top bidder, said there was no question of upping its bid.

Dalmia Bharat’s resolution plan has already been accepted and submitted to the tribunal for its approval, said Mahendra Singhi, group chief executive officer of Dalmia Bharat. “We have strong case,” he added.

Rohatgi claimed at the tribunal that Dalmia Bharat had initially offered ₹6,589 crore for the assets of Binani Cement, which include limestone deposits that would last several decades. UltraTech’s original bid was only ₹50-100 crore lower than Dalmia Bharat’s, according to an AV Birla Group official who declined to be named.

Though the committee of creditors engaged in discussions with Dalmia Bharat exclusively and got its bid raised to ₹6,932 crore, it did not give a similar opportunity to UltraTech, Rohatgi submitted at the tribunal, adding that the resolution professional, or the administrator for Binani Cement, had extended the deadline for filing nominations at least five times.

Rohatgi prayed for cancellation of the lenders’ approval of Dalmia Bharat’s bid. He said the committee of creditors should consider UltraTech’s bid as well, and take a decision accordingly.

With its latest bid of ₹7,960 crore, UltraTech has said it would pay all creditors in full including vendors, except those found to be related to the promoters of Binani Cement. The AV Birla Group company has said it will fully pay off statutory dues of ₹177.5 crore, unlike Dalmia Bharat, which has proposed to pay ₹33 crore only.

KOLKATA: